By Claire Moraa
- At least 77% of Black professionals aspire to become an entrepreneur
- There’s been a 38% increase in the establishment of new businesses between 2020 and 2023
There’s a growing confidence and interest among Black professionals in pursuing entrepreneurship as a career path. In just four years, 1.6 million businesses have been created in the period between 2020 and 2023. This surge in entrepreneurial spirit is a positive development that can lead to increased representation, innovation, and economic empowerment within the Black community.
Why This Matters: Historically, entrepreneurial ventures have been responsible for approximately one-fifth of all new job creation. However, the recent surge has key drivers. There has been a notable increase in investment directed towards Black-owned businesses. The digital economy has also opened up new avenues for Black entrepreneurs to market their goods and services by tapping into new audiences with no barriers. A huge shift happened during the pandemic and perhaps contributed to the greatest revolution.
There was an upward trajectory as people tried to navigate the new norm while staying afloat. It’s no secret that people of color tend to land on the chopping board first so with massive layoffs during this time, it’s no surprise they decided to write their own fate. Exploring all avenues after a lot of industry disruptions enabled startups to explore and find a bearing. And they certainly have. Black businesses have peaked and are at a 28% more open rate than they were pre-pandemic. They’re also the top U.S. contributors in annual revenue standing at $206 billion and accounting for 3.56 million jobs.
What’s Next: Entrepreneurship is a journey into the unknown. A risky investment with no guarantee on returns. The bigger picture reflects one’s desire to take ownership of their economic future and to contribute to the broader business landscape. On the broader spectrum, it plays a vital role in generating employment opportunities and stimulating economic growth. Supporting and fostering entrepreneurship can thus have a positive impact on job creation and the overall economy. Black businesses booming and thriving can only mean there are more opportunities for the community as it helps to create more diverse and inclusive business environments, stimulate innovation, create jobs, and contribute to overall economic development.
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